Question
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products.
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Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. PLEASEANSWER ALL 3 QUESTIONS I DONT HAVE ANY REMANING I NEED HELP THANKS !
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Overhead Direct Labor Hours (dlh) Product A B Painting Dept. $248,000 10,000 dlh 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dlh 20 dlh 20 dlh The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is
a.$99.20 per unit
b.$64.00 per unit
c.$49.60 per unit
d.$28.80 per unit
2-Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours.
Overhead | Direct Labor Hours (dlh) | Product | |||||||
A | B | ||||||||
Painting Dept. | $258,800 | 11,900 | dlh | 7 | dlh | 8 | dlh | ||
Finishing Dept. | 76,400 | 10,400 | 5 | 7 | |||||
Totals | $335,200 | 22,300 | dlh | 12 | dlh | 15 | dlh |
Using a single plantwide rate, the factory overhead allocated per unit of Product B is
a.$15.03
b.$225.45
c.$180.36
d.$152.24
3-A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of $1,000,000.
Required:
a. What is the break-even point in sales dollars? $
b. What is the operating income? $
c. If neither the relationship between variable costs and sales nor the amount of fixed costs is expected to change in the next year, how much additional operating income can be earned by increasing sales by $110,000?
Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Direct Product Overhead Labor Hours (dlh) A B Painting Dept. $248,000 10,000 dih 16 dlh 4 dlh Finishing Dept. 72,000 10,000 4 16 Totals $320,000 20,000 dlh 20 dlh 20 dlh The factory overhead allocated per unit of Product B in the Painting Department if Blue Ridge Marketing Inc. uses the multiple production department factory overhead rate method is Oa. $99.20 per unit Ob. $64.00 per unit Oc. $49.60 per unit Od. $28.80 per unit Blue Ridge Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rate for allocating overhead to products. However, management is considering moving to a multiple department rate system for allocating overhead. The following table presents information about estimated overhead and direct labor hours. Direct Product Overhead Labor Hours (dlh) B Painting Dept. $258,800 11,900 dlh 7 dlh 8 dlh Finishing Dept. 76,400 10,400 5 7 Totals $335,200 22,300 dih 12 dlh 15 dlh Using a single plantwide rate, the factory overhead allocated per unit of Product B is Oa. $15.03 Ob. $225.45 Oc. $180.36 Od. $152.24 A company has a margin of safety of 25%, a contribution margin ratio of 30%, and sales of $1,000,000. Required: a. What is the break-even point in sales dollars? $ b. What is the operating income? $ c. If neither the relationship between variable costs and sales nor the amount of fixed costs is expected to change in the next year, how much additional operating income can be earned by increasing sales by $110,000? $Step by Step Solution
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